Share market goes belly up - what would you do

Great post @Isla_Nublar - Precisely what I needed

 

... and, if under 18, there is nothing, not one thing which prevents anyone’s parents from purchasing shares for them.

We did it for our kids when they were 6 months old (now nearly 34 and 36).

They are in turn buying shares for our grandkids (currently 5, 2 and 1).

 

I have to agree with that @Nodrog . I have not only now gone all in so no cash on the sidelines. I have even leveraged for some extra funds based on what cash I except to flow in over the next 3 months and put that in now. Last lump sum buy was on Monday.

 

How did the 1987 crash affect you ?

 

I missed that one,i was only into property then..Bond Corp-Quintrex were the first few lesson's learnt and when you look back the way the Banks dealt with Skase it never ended well..
The only good part with Skase when they found several 40ft containers and it all went on the auction floor i bought the artworks that he would sit in front on his office wall from several now passed away Australian Artist's..

 

@Beano this was not addressed to me but I will chime in anyway We were 30 something with a young family and had built a PPOR two years before. This meant we were lucky despite the high interest rates of the times. We had sold most of our shares so we could landscape/furnish our new home not long before the crash. What we learnt though was most important. It set us up for our future investments both personally and in business. After 1987 we made sure we had low debt levels, a competitive advantage and reliable earnings. When buying investments we have a plan and stick to it. Don't be a sheep and follow the flock. Just because it seems that everybody around you is buying or selling - don't do that - unless its part of your plan.

 

People who have experienced 1987 , the Asian crisis 1997 and the GFC 2007-8 seem to understand risk better than those that started their investment over the last ten years.

 

I live through the GFC
I still have memories of it, CBA down to $25 bucks, rumour going around people withdraw and do bank run

Wes made bad timing for coles acquisition and close to the brink, it urgently raised capital at a massive discount I think around $12 or $15 a share.

suncorp get hit bad share in free fall from 15 capital raising around $5 and under

exact figure I can’t remember but around there

rams gone bust due to liquidity and what it left is book run called rhg

Dominos Just listed not long ago bought for $2
It hold through the gfc pretty well I hang
On sold out when to reach $45 after gfc only to see it becomes a market darling and go to $80

Margin call left and right stock free fall day after day due to margin call. I got little debt no margin get to watch horrible stories of people force to liquidate due to margin call I just watch and buy

so many stories still vivid - and I can re live again if it ever happened again
There is no escape everything get hit doesn’t matter who you are it just relentlessly sell
You think you bought stuff cheap to see it get cheaper next day and next week

Portfolio down 40% unfazed bought more and the rest is history, lot of stock double triple gone up 10 times. I would said gfc made me a lot richer but it was scary at the time

dont have much debt back then or now give me confident if I lose my job I can survive and able to take advantage of cheap asset when other force to sell.

despite fully invested In the market I cashed out a 100k today and a bit more tomorrow and leave it there plus the odd 100k here and there in the offset.
Stop my kids buying any more ETF I told them keep what is there but build up your saving you don’t want to be penniless when blood is on the street

It not that I scare but I am in risk management mode and ready to pound when the times comes I don’t know when how and where I just know I Am always ready when the time come

 

Agreed @Beano its all about risk management and its different for all of us. Our industry/work life was the tech industry so we have been through all the above and the tech bubble of 2000 as well. What about you? What is your appetite for risk? Do you remember any or all of the above crashes?

 

Planning to do the same, did you buy in your own name? If so how did you pass the assets to your kids?

 

I remember them all hence my appetite for risk is very low.
My recent purchases (last decade) would probably have the lowest risk of everyone on PC.
I would rather keep what I have than gain what I do not need.

 

Wise words, similar to someone who once advice me would you rather
have 500,000 with little risk or 1 millions with the risk of losing it all

I said I take 500K thank you, I certainly would have got wiped out have I taken on debt before the GFC for shares, timely advice

you can not come back from a forced sell when asset dropped 40% as simple as that
adding in with debt it magnifies that loss, you virtually lose all your borrowing capability
and you get trapped in a debt hell hole

 

Then like us you are happy with what you have.

 

In Japan when interest rates dropped, what they had was worth less than half and the returns were based on that value were also halved.
So CG minus >50%
Returns avg less than 2%

 

What happen to investments that the return did not fall ?

 

I am trying to do some research, but the whole markets revolve around the price of money.
The exporters and globals did better as returns were better around the world.
The banks were hit hard with some benefit from OS borrowers who would borrow for less than half the local rate.
But like all things, the market eventually fills the balance and the currency rise clawed back the benefits.

For eg In the days when our bank term deposits were paying 8 to 10%, Japan rates were 2%.
Borrow at 2%, invest at 10%!!!!
The the yen started rising, and rising and rising...

What happens when the G20 is all at 1% or less Reserve bank rates?
We wait and see...

 

This is the US longest bull run in its history and there is no sign of slowing down

it begins at the deep of the GFC on March 9, 2009, where blood and tear and million of job loss as result of Master of Wall St to forge the cash so they can rule the world

Nine Stock Exchanges was given to the race of men who above all else desires greed

 

Its not just stocks, property markets in most States in US going nuts

Trump just signed trade deal with China today, markets reacting to this

 

this is today
https://www.bloomberg.com/news/arti...g-surge-helps-fuel-most-profitable-year-ever?

it bring back memory I remember Lehman Brother report nearly 30% jump in profit to its best record in 2007, a year later it went bankrupt.

Let the good time roll on

 

The race of men who desire greed?